Texas GulfLink Deepwater Port: Latest Updates (2026)

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Texas GulfLink Deepwater Port: Latest Updates (2026)

Updated on Oct 19, 2026, 04:20 PM IST
Written by Siddhi Jain

 

Project at a Glance

Project Name

Texas GulfLink Deepwater Port

Project Type

Deepwater crude oil export port

Project Status

Federal Approval Vacated

Project Location

Gulf of Mexico, offshore Freeport, Texas 

Developer

Sentinel Midstream LLC 

Loading Capacity (VLCC)

Fully loads VLCCs (about 2 million bbl each) offshore; maximum loading rate: 85,000 bbl/hr

Nominal Capacity

1.2 million barrels per day

 

Project Overview

Texas GulfLink is a proposed deepwater crude oil export port about 30 miles off Freeport in Brazoria County, Texas. Sentinel Midstream developed the project through its affiliate Texas GulfLink, LLC. It is designed to load VLCCs fully offshore, removing the need to top off larger tankers with smaller vessels in shallow Gulf Coast channels. 

The design combines two floating SPM buoys, a manned platform for monitoring, custody transfer metering, and surge relief, a 42-in. pipeline to shore, and an onshore tank farm near Jones Creek, Texas. 

Sentinel says the terminal would use vapor recovery on a dynamically positioned vessel, which it estimates would prevent up to 19,000 tons of VOC emissions per year and cut emissions by about 86% versus reverse lightering. 

The project advanced quickly in 2025–2026. A MARAD record of decision was received in February 2025. The project license was issued in early 2026. A USD 2.1 billion U.S.–Japan Trade Agreement funding announcement was made in February 2026. The construction work began in May 2026.

On 12 August 2026, the Fifth Circuit vacated the record of decision. The project's path forward depends on MARAD's remand decision and any further legal steps, none of which have been reported. 

 

Texas GulfLink Project Location

Texas GulfLink is located in Brazoria County, Texas, with its onshore terminal near Jones Creek, west of Lake Jackson and Freeport. Its offshore deepwater crude-oil export terminal is in the Gulf of Mexico, about 30.5 miles off the Texas coast and west of Freeport. 

 

Texas GulfLink Project Map

Texas Gulflink Project Map

 

Project Background

Texas GulfLink was one of three deepwater port applications for the Freeport area filed with MARAD in 2019, alongside SPOT and Texas COLT. Texas COLT later withdrew. MARAD approved SPOT in November 2022, and the Fifth Circuit upheld that approval in 2024. 

MARAD issued its record of decision approving Texas GulfLink on 14 February 2025, announced by Sentinel on 18 February 2025. In January 2026, the Department of Transportation said MARAD was taking over deepwater port licensing from the Coast Guard, and the license followed on 29 January.

 

Texas GulfLink Project Status

On 12 August 2026, the U.S. Court of Appeals for the Fifth Circuit vacated MARAD's record of decision approving Texas GulfLink and remanded it. The court held that the application area must include the port's pipelines, and that a properly drawn area would overlap the already-approved SPOT project, breaching the Deepwater Port Act's one-port-per-application-area rule. 

This came three months after Sentinel announced on 4 May 2026 that construction had started with USD 2.1 billion of funding under the U.S.–Japan Trade Agreement, targeting operations by Q4 2028. Sentinel declined to comment, and there was no appeal, rehearing petition, or MARAD remand action.

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Stakeholder Details

Stakeholder

Role

Sentinel Midstream LLC

Developer; parent of Texas GulfLink LLC 

Cresta Fund Management

Sponsor/capital provider

Government of Japan / U.S. Commerce Department

Funding under U.S.–Japan Trade Agreement 

MARAD

Licensing Authority

 

Texas GulfLink Project Cost

The total estimated cost for the Texas GulfLink Project is approximately USD 2.1 billion. It is specified by Sentinel Midstream and the U.S. government in connection with the Japan-U.S. strategic investment agreement supporting the project.

 

Project Scope

The following is the project scope of the Texas GulfLink Project:

  • Onshore crude storage terminal: Texas GulfLink will build a terminal near Jones Creek in Brazoria County, Texas, with above-ground geodesic-dome storage tanks. 

  • Inbound crude-oil pipeline: A 36-inch onshore pipeline will transport crude oil from Houston-area supply sources to the Jones Creek storage terminal. 

  • Offshore export pipeline: A 42-inch offshore pipeline will carry crude oil from the Jones Creek terminal to the deepwater port in federal waters. It will terminate at the offshore loading system, enabling large-volume crude movement to tankers. 

  • Deepwater terminal and SPM buoys: The offshore scope includes two catenary anchor leg mooring (CALM) single-point mooring (SPM) buoys. Tankers will connect to these buoys through floating hoses for loading. 

 

Project Timeline

Year

Event

2028

Expected completion target of the project

12 August 2026

Fifth Circuit vacates MARAD record of decision and remands 

4 May 2026

Sentinel announces Final Investment Decision and construction start  

29 January 2026

Deepwater port license granted 

14 February 2025

MARAD approves Texas GulfLink application; announced 18 February 2025 

30 May 2019

Texas GulfLink applies to MARAD for a deepwater port license  

 

Benefits

The following are the benefits of the project: 

  • Significant reduction in emissions: Direct offshore loading of Very Large Crude Carriers (VLCCs) cuts overall emissions by about 86% and CO₂ emissions by about 83% compared with traditional reverse lightering.

  • Improved air quality for coastal communities: Loading occurs more than 30 miles offshore instead of near-shore ports, so emissions from lightering no longer affect portside areas. This delivers cleaner air for nearby communities.

  • Greater efficiency and lower export costs: Full loading of VLCCs in a single operation eliminates the need for inefficient, multi-step lightering with smaller vessels. This makes U.S. crude more competitive on global markets by reducing time, cost, and logistical friction

  • Reduced port congestion and better safety: By moving VLCC loading offshore, the project eases vessel traffic in near-shore waters and ship channels. This improves navigational safety and lowers the risk of incidents in busy coastal areas.

 

Conclusion

Texas GulfLink is a significant deepwater crude-oil export project, connecting Texas crude supplies in the Houston market with international VLCC markets. By combining an onshore Jones Creek storage terminal, offshore pipelines, and two offshore SPM loading buoys, the project creates a direct export route. 

It is designed to fully load VLCCs at sea, with capacity of up to 1 million barrels per day and about 365 million barrels annually. It is expected to improve U.S. crude-export efficiency, reduce reliance on lightering operations, and ease vessel traffic in crowded ship channels.

Once operational, Texas GulfLink is anticipated to generate thousands of local and regional jobs and millions of dollars in revenue. The Texas GulfLink Project is positioned to become a major infrastructure asset for the Texas Gulf Coast and the broader U.S. crude-export system. 

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